This loan status appears when there is a pending approval from a guarantor. It means that the guarantor has not yet approved a borrower’s loan request. Once a borrower adds a guarantor, the system notifies that person via email or SMS. Until the guarantor takes action, the loan remains in a pending approval state. The system holds the loan and won’t move it to the next stage.
For example, if a user applies for ₦100,000, approval pauses until the guarantor agrees to back it. The borrower has to get the guarantor’s approval before the loan is disbursed. This status helps lenders avoid disbursing funds without sufficient backing or collateral. If the guarantor rejects the request, the system automatically declines the loan.
To resolve this status quickly, encourage your borrower to remind their guarantor to respond. You can also resend the approval request from the admin console for quicker processing. This protects your loan book and ensures only supported loans proceed to disbursement.
Read further: BNPL vs. traditional loans: What works best for US immigrants?